I presume the template you were using is this one (they were moved a little since) https://github.com/openstack/heat-tem...

that kind of error with the Instance successfully created most probably means that the init-script failed, did not run to its end enough to signal the success back (this particluar line in the template was not reached https://github.com/openstack/heat-tem... )

can you try to boot the instance with the same params manually, login there and repeat the steps from the init-script by hand? As I see there is some jumping around SELinux in the script, I suspect that something around it might be a culprit (e.g. updated selinux-policies with newer policies that block some additional operations).